Rapaport Weekly Market Comment

Mumbai IIJS show opens to busy jewelry section, due to pent-up
demand after India’s 2Q gold jewelry sales -8% to 147.9 tonnes, according to
the World Gold Council. Diamond halls quiet, with larger companies displaying finished
pieces rather than loose stones. Global markets slow and still in vacation
mode. Some improvement in US, with retailers focused on custom bridal pieces
during summer wedding season. Samuels Jewelers files Chapter 11, with
liabilities of $100M to $500M. Titan 1Q revenue +9% to $652M, profit +38% to
$48M. Letšeng 2Q average price +33% to $2,742/ct. Karowe 2Q average price -39%
to $782/ct. René Kamm resigns as
MCH Group CEO after Swatch exits Baselworld.

Fancies: Far East demand improving as Chinese consumers seek Pears and
Princesses at better prices. US and European demand mixed. Ovals and Cushions
are best sellers, followed by Emeralds and Pears. Marquises and Princesses
weak. Oversizes selling well. Steady demand for fine-quality 6 to 10 ct. Ovals,
Pears and Emeralds, with prices firming for 3 to 5 ct. due to shortages. US
supporting market for commercial-quality, medium-priced fancies under 1 ct.
Off-make, poorly cut fancies illiquid and hard to sell, even at very deep
discounts.

United States: Dealers more active than before vacation. Positive sentiment, with
buyers focused on specific orders. Steady demand for 1 ct., G-H, VS-SI, RapSpec
A3+ diamonds. Retail sales stable as consumer confidence edges up in July,
according to the Conference Board. Larger independents and established brands
driving growth.

Belgium: Market very quiet, with bourses officially closed and most dealers
on vacation until August 20. Optimism for good trading after the break.

Israel: Very little going on, with bourse closed until August 19. Dealers
focused on preparing inventory for the September Hong Kong show.
India: Local traders concentrating on IIJS show, which started Thursday
(August 9). Sentiment mixed amid further bankruptcy rumors. Few foreign buyers
in the market, with companies preferring to wait until the Hong Kong fair.
Steady demand for 1 ct., G-H, SIs. Rough
prices firm, but activity low due to Antwerp dealers being on vacation.